Faisalabad, Chenab Limited, a public limited company incorporated under the Companies Act 2017 and listed on the Pakistan Stock Exchange, has published its unaudited financial statements for the first quarter ended September 30, 2022. The company, with its registered office located in Nishatabad, Faisalabad, primarily engages in exporting various textile products including value-added fabrics and fashion garments. According to information available from the Pakistan Stock Exchange (PSX), the geographical spread of its operations includes multiple business units across Punjab and an office in Karachi.
The financial update highlights that as of September 30, 2022, Chenab Limited recorded an accumulated loss of Rs.8,464 million, with current liabilities surpassing current assets by Rs.1,395 million. The company also reported difficulties in redeeming preference shares due to a tight cash flow situation. Additionally, Chenab Limited was previously wound up by an order of the Lahore High Court on July 13, 2017, due to a breach of debt covenants. This order was challenged and subsequently, a Scheme of Arrangement was approved by the court on October 29, 2021, reversing the winding-up order and restoring the company's management.
Under this arrangement, the company is set to repay a total principal debt of Rs.9,474,972,728, divided equally into Tier 1 and Tier 2 debts, with specific repayment schedules stretching over several years. The management has outlined strategies for financial recovery, including the disposal of non-core assets expected to generate Rs.1.4 billion, rescheduling of loans, securing additional working capital facilities, and an infusion of Rs.350 million in fresh equity.
The unaudited condensed interim financial statements have been prepared in accordance with the International Accounting Standard (IAS) 34, as notified under the Companies Act, 2017, and other relevant provisions and directives. These statements are intended to provide shareholders with a snapshot of the company's financial status and should be read in conjunction with the annual audited financial statements for a comprehensive understanding.